Nexstar Energy Ltd.

Nexstar Energy Ltd.

August 10, 2006 11:26 ET

Nexstar Energy Closes Fully Subscribed Initial Public Offering

CALGARY, ALBERTA--(CCNMatthews - Aug. 10, 2006) - Nexstar Energy Ltd. ("Nexstar" or the "Company") (TSX VENTURE:NXE.A) (TSX VENTURE:NXE.B)is pleased to announce that it has successfully closed its initial public offering (the "Offering"). The Offering was fully subscribed with gross proceeds of $11,000,000 and an additional $600,000 on initial exercise of the over-allotment option. The syndicate has a 30 day period to elect to purchase an over-allotment amount of $1,000,000 in aggregate. MGI Securities Inc. acted as lead agent on behalf of a syndicate that included Canaccord Capital Corporation and CIBC World Markets Inc. A total of 11,600 Units (the "Units") were subscribed for at a price of $1,000 per Unit. Each Unit consists of 400 flow-through Class A Shares at a price of $0.25 per share and 90 flow-through Class B Shares at a price of $10.00 per share. Following the financing, Nexstar has 9,040,000 Class A Shares and 1,044,000 Class B Shares issued and outstanding. It is expected that the shares of the Company will commence trading on the TSX Venture Exchange ("TSXV") on or before August 25, 2006 and subject to filing of the documents and final approval of the TSXV to the Offering.

The Management and Board of Directors of Nexstar are very pleased with the response to the Offering and look forward to the commencement of the Company's planned exploration program in West Central Alberta.

Nexstar's senior management includes Peter A. Carwardine, President and Chief Executive Officer, Brian J. Spilchen, Vice-President Finance and Chief Financial Officer, Christian L. Viau, Vice-President, Exploration, Ken K.W. Pyo, Vice-President, Engineering and Operations, Steve J. Smith, Manager, Land and Anant J. Shah, Manager, Reserves and Evaluations. The Directors of Nexstar are Brian J. Mellum (Chairman), Daryl H. Gilbert, Ross O. Drysdale, Peter A. Carwardine and Brian J. Spilchen.

Nexstar Energy Ltd. is an emerging junior oil and gas company focused on the exploration, development and exploitation of oil and natural gas reserves in western Canada.

ADVISORY: Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environment risks, competition from other producers and ability to assess sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

9,040,000 Class A Shares

1,044,000 Class B Shares

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Nexstar Energy Ltd.
    Peter A. Carwardine
    President and Chief Executive Officer
    (403) 263-6133 ext.201
    Nexstar Energy Ltd.
    Brian J. Spilchen
    Vice-President Finance and CFO
    (403) 263-6133 ext.202
    Nexstar Energy Ltd.
    603 - 7 Avenue SW, Suite 525
    Calgary, Alberta T2P 2T5
    (403) 263-3629 (FAX)